Anyone holding Proctor & Gamble get a message about Galleria?

Discuss your favourite picks, broker, and trading or investment style.
Post Reply
Mouly
Contributor
Contributor
Posts: 684
Joined: 16 Aug 2005 00:35
Location: zzz

Anyone holding Proctor & Gamble get a message about Galleria?

Post by Mouly »

I've got the message below once and ignored it, figuring 'whatever, I'll just go with the default'. Then I got the message again. Do I need to do anything here? I'm still assuming that if I do nothing then I'll just get some default option that is not significantly better/worse than some other action.

BMO InvestorLine has been informed that Procter & Gamble Company offers to exchange all shares of common stock of Galleria Co. that are owned by the Procter & Gamble Company for shares of Coty Class A Common stock at a rate to be determined per share, subject to the terms and conditions of the offer.


Terms:


Option 1: Exchange Shares (Subject to Proration for Non Odd Lot holders)(See Important Notes)
To receive a number of shares of Coty Class A Common stock at a rate to be determined for each share of Procter & Gamble Company tendered.


Option 99: Do Nothing (Default) Holders to retain security


Important Notes:


Exchange Rate
For each USD $1.00 in value of Procter & Gamble Co common stock accepted in the exchange offer, holders will receive approximately USD $1.075 in value of Galleria company common stock subject to an upper limit of 3.9033 shares of Galleria Company common stock per share of P&G common stock. If the upper limit is in effect, you will receive less than USD$1.075 of shares of Galleria company common stock for each USD $1.00 of P&G common stock that you tender, and you could receive much less.


Immediately following the exchange offer, if the exchange offer is completed but is not fully subscribed P&G will distribute all of the shares of Galleria company common stock it continues to own in a subsequent pro rata dividend to P&G shareholders whose shares of P&G common stock remain outstanding and have not been accepted for exchange in the exchange offer. Any P&G Shareholder who validly tenders shares of P&G Common stock for shares of Galleria company common stock in the exchange offer will waive its rights with respect to those tendered shares of P&G Common Stock to receive, and forfeit any rights to, any remaining shares distributed on a pro rata basis to the remaining P&G shareholders.
According to the terms of the merger, each issued and outstanding share of Galleria common stock will be converted into the right to receive one fully paid and non assessable share of Coty Class A common stock.


Odd-Lot Preference


The fund may accept all shares tendered by any stockholder who owns, beneficially or of record, an aggregate of not more than 99 shares and who tendered all such shares.


Proration
Depending on the number of shares of P&G common stock validly tendered in the exchange offer and not properly withdrawn, P&G may have to limit the number of shares of P&G stock that it accepts in the exchange offer through a proration process.


Any proration of the number of shares accepted in this exchange offer will be determined on the basis of the proration mechanics described in the section of the offer document entitled ¿the exchange offer-Terms or this Exchange Offer-Proration¿

BMO InvestorLine requests that you direct inquiries pertaining to the offer (other than submission of instructions) to Procter & Gamble Co. Shareholders are advised to obtain independent advice and consult the offering circular regarding any possible tax consequences and for further details of the offer.

Please call BMO InvestorLine on 1-888-776-6886 and provide your instructions. Faxes and/or written instructions will not be accepted. Instructions must be received prior to September 28, 2016 9:00am Eastern Standard Time (EST). Any instructions received after this time will be sent on a best effort basis only. If no instructions are received, BMO InvestorLine will take no action.

BMO InvestorLine does not charge your account any commission for reorganizations or entitlements. Please allow 1-3 weeks after the expiry date for processing of Canadian issues and up to 90 days if US based. If you tender your shares to an offer, please ensure you do not place any sell orders on the position. This may result in a short position and financial losses that you may be responsible for. If you wish to place a sell order, please contact us first to ensure your original instructions can be cancelled.

For offers that include a cash payment, the payment will be deposited in the account in the same currency as the currency in which the position is held in the account, which may result in exposure to a foreign currency conversion. BMO Investorline will not be responsible for any losses incurred as a result of a foreign exchange conversion.

Regards,
BMO InvestorLine


The information in this letter is compiled from sources believed reliable. However, BMO InvestorLine does not ensure the accuracy, adequacy, timeliness, completeness, or fitness of the data and as such assumes no liability for any losses resulting in its use.
User avatar
Peculiar_Investor
Administrator
Administrator
Posts: 13267
Joined: 01 Mar 2005 14:52
Location: Calgary
Contact:

Re: Anyone holding Proctor & Gamble get a message about Galleria?

Post by Peculiar_Investor »

I'm not a shareholder nor do I follow this company, but if you Google P&G investor relations you can find the original press release Galleria Co./Coty Inc. Exchange Offer.
The exchange offer provides P&G shareholders with the opportunity to exchange their shares of P&G common stock for shares of Galleria Co. common stock, which will convert into shares of Coty class A common stock upon completion of the merger. The exchange and the merger are expected to be tax-free to participating P&G shareholders for U.S. federal income tax purposes.
Nothing about Canadian investors, so there might be capital gains triggered if you participate.

Based on my quick read of this, your choice is to maintain your holding in P&G or shift your holding into Coty (Symbol COTY). I guess it depends on your investment thesis for holding P&G and I'd make sure I fully understand what is the default option to make sure that you end up holding the company that wanted to be shareholder.

Buried in the press release
For more information about the proposed transaction, please visit the website that P&G will
maintain for the exchange offer at http://www.dfking.com/pg.
Not sure if this helps clarify the choices. Good luck.
Imagefiniki, the Canadian financial wiki New editors wanted and welcomed, please help collaborate and improve the wiki.

Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams
Post Reply